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12 LCW Seventh Amendment PREPARED BY: Cheryl Parkman Human Resources Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 08/05/2025 ITEM NO: 12 DATE: July 25, 2025 TO: Mayor and Town Council FROM: Chris Constantin, Town Manager SUBJECT: Seventh Amendment to a Special Services Agreement with Liebert Cassidy Whitmore (LCW) RECOMMENDATION: Authorize the Town Manager to execute a Seventh Amendment (Attachment 1) to a special services agreement with Liebert Cassidy Whitmore. FISCAL IMPACT: There is no additional fiscal impact associated with the seventh amendment as there is sufficient funding remaining in the contract to provide services through Fiscal Year (FY) 2025- 26. Staff estimates that costs for FY 2025-26 will not exceed $80,000, which is consistent with the average amount spent per year and is already included in the adopted FY 2025-26 budget. STRATEGIC PRIORITIES: This item relates to the Town’s strategic priority of prudent financial management as LCW helps the Town with employee relations and labor relations issues to mitigate any significant financial risks associated with those areas. BACKGROUND: In 2018, Liebert Cassidy Whitmore (LCW) was selected as a single source provider for labor and employment relations services, and services were continued in 2020 as the result of a competitive interview process. LCW provides valuable negotiations and employee relations legal guidance and has established a good rapport with the Town’s bargaining units. On May 17, 2022, the Town Council authorized the Town Manager to execute a First Amendment to the Special Services Agreement with LCW to extend the term through June 30, PAGE 2 OF 3 SUBJECT: Seventh Amendment to Agreement with Liebert Cassidy Whitmore (LCW) DATE: July 25, 2025 2024 and to increase compensation in the amount of $15,000 for a total contract amount not to exceed $180,000. On September 20, 2022, the Town Council authorized the Town Manager to execute a Second Amendment to the Special Services Agreement with LCW to increase compensation in the amount of $50,000 for a total contract amount not to exceed $230,000. On September 19, 2023, the Town Council authorized the Town Manager to execute a Third Amendment to the Special Services Agreement with LCW to increase compensation in the amount of $50,000 for a total contract amount not to exceed $280,000. On October 17, 2023, the Town Council authorized the Town Manager to execute a Fourth Amendment (Attachment 5) to the Special Services Agreement with LCW to increase compensation in the amount of $150,000 for a total contract amount not to exceed $430,000. On June 18, 2024, the Town Council authorized the Town Manager to execute a Fifth Amendment to the special services agreement with LCW to increase the compensation in the amount of $120,000 for a total contract not to exceed $550,000. On August 6, 2024, the Town Council authorized the Town Manager to execute a Sixth Amendment to the special services agreement with LCW to update the fee schedule for LCW hourly rates. DISCUSSION: The current agreement expired on June 30, 2025. The proposed Seventh Amendment would extend the term to June 30, 2026, and update LCW’s rates. LCW provides ongoing legal services related to employee and labor relations issues, and it would be detrimental to the Town if the Human Resources staff lost the continuity of services provided by LCW. CONCLUSION: LCW has been highly effective in assisting the Town with labor negotiations and employment relations support. Staff recommend that the Town Council authorize the Town Manager to execute the Seventh Amendment to extend the term of the agreement. COORDINATION: This memo was coordinated with the Finance Department and the Town Attorney’s Office. PAGE 3 OF 3 SUBJECT: Seventh Amendment to Agreement with Liebert Cassidy Whitmore (LCW) DATE: July 25, 2025 ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Seventh Amendment 2. Combined First Amendment with Original Agreement through Sixth Amendment SEVENTH AMENDMENT TO AGREEMENT FOR SPECIAL SERVICES PREAMBLE THIS SEVENTH AMENDMENT TO AGREEMENT is entered into this 1st day of July, 2025, by and between the Town of Los Gatos, State of California, herein called the “Town,” and Liebert Cassidy Whitmore, a Professional Corporation (“Attorney”), herein called the “Attorney.” I.RECITALS A.Town and Attorney entered into a Special Services Agreement from February 1, 2020, through February 1, 2022 (“Agreement”). B.Town and Attorney entered into a First Amendment to Agreement on May 17, 2022. C.Town and Attorney entered into a Second Amendment to Agreement on September 12, 2022. D.Town and Attorney entered into a Third Amendment to Agreement on September 19, 2023. E.Town and Attorney entered into a Fourth Amendment to Agreement on October 17, 2023. F.Town and Attorney entered into a Fifth Amendment to Agreement on June 18, 2024. G.Town and Attorney entered into a Sixth Amendment to Agreement on August 6, 2024. II.AMENDMENT 1.The fee schedule associated with the hourly rates for the following consultant positions shall be increased to the following amounts: Partners $465.00 Senior Counsel $385.00 Associates $295.00 - $365.00 Labor Relations/Human Resources Consultant $305.00 Classification and Compensation Consultant $230.00 Paralegals $165.00 E-Discovery Specialists $185.00 Law Clerks $180.00 - $200.00 2.The Town desires to extend the Agreement from July 1, 2025 through June 30, 2026. Attachment 1 3.All other terms and conditions of the Agreement dated February 1, 2020, the First Amendment dated May 17, 2022, Second Amendment dated September 12, 2022, Third Amendment dated September 19, 2023, Fourth Amendment dated October 17, 2023, Fifth Amendment dated June 18, 2024, and Sixth Amendment dated August 6, 2024, remain in full force and effect. IN WITNESS WHEREOF, the Town and Attorney have executed the Seventh Amendment to Agreement as of the date indicated above. Town of Los Gatos: Attorney: By: By: Chris Constantin J.Scott Tiedemann, Managing Partner Town Manager Liebert Cassidy Whitmore Department Approval: Cheryl Parkman Human Resources Director Approved as to Form: Gabrielle Whelan Town Attorney Attest: Wendy Wood Town Clerk MEMORANDUM DATE: July 1, 2025 TO: Gabrielle Whelan, Town Attorney FROM: Cheryl Parkman, Human Resources Director SUBJECT: Single Source for Approval by Town Attorney: Liebert Cassidy Whitmore – FY 2025/26 Purpose This memorandum provides justification for the continued use of Liebert Cassidy Whitmore (LCW) as the single-source provider of labor and employment legal services and human resources consulting for the Town of Los Gatos. Background The Town of Los Gatos has maintained a professional services agreement with LCW since 2007, relying on their specialized expertise for labor relations, employment law, negotiations support, and employee relations consulting. The Town has amended this agreement as needed to reflect service scope and rate adjustments, most recently through the Seventh Amendment, effective July 1, 2025. Justification for Sole Source Selection 1. Exclusive Public Sector Expertise: LCW is a recognized statewide leader in public agency labor and employment law, providing representation exclusively to public sector clients. Their attorneys and consultants possess in-depth knowledge of California labor statutes, including the Meyers-Milias-Brown Act (MMBA), the Public Employees’ Retirement Law (PERL), and applicable state and federal employment laws. 2. Continuity and Institutional Knowledge: LCW’s 18-year history of service to the Town has resulted in a deep understanding of the Town’s personnel systems, labor agreements, and historical labor relations matters, allowing them to provide more efficient and tailored legal services. This continuity supports operational stability and eliminates the learning curve and transition costs associated with onboarding a new provider. 3. Comprehensive Legal and Consulting Services: LCW delivers a full spectrum of services, including labor negotiations, discipline and grievance process guidance, employment litigation defense, administrative hearing representation, and human resources consulting services such as classification and compensation studies and workforce policy advisement. This broad expertise allows the Town to manage multiple labor and employment needs through a single, trusted provider. 4. Sole Provider of Specialized Services: LCW operates as a specialized legal services firm with no alternative or comparable vendors offering the same depth of experience and comprehensive services focused exclusively on public agencies. A competitive solicitation process would not result in materially different options that could match LCW’s scope, value, or institutional familiarity with the Town. Conclusion Based on LCW’s public sector specialization, longstanding service history, and comprehensive scope of services, it is in the Town’s best interest to continue utilizing LCW’s services on a single-source basis, without soliciting formal competitive proposals. Recommended By: Approved By: ____________________________________ ______________________________________ Cheryl Parkman, Date Gabrielle Whelan, Date Human Resources Director Town Attorney Attest: ______________________________________ Wendy Wood, CMC, Town Clerk Date SIXTH AMENDMENT TO AGREEMENT FOR SPECIAL SERVICES THIS SIXTH AMENDMENT TO AGREEMENT is entered into this 6th day of August, 2024, by and between the Town of Los Gatos, State of California, herein called the “Town,” and Liebert Cassidy Whitmore, a Professional Corporation (“Attorney”), herein called the “Attorney.” RECITALS A.Town and Attorney entered into a Special Services Agreement from February 1, 2020, through February 1, 2022 (“Agreement”). B.Town and Attorney entered into a First Amendment to Agreement on May 17, 2022. C.Town and Attorney entered into a Second Amendment to Agreement on September 12, 2022. D.Town and Attorney entered into a Third Amendment to Agreement on September 19, 2023. E.Town and Attorney entered into a Fourth Amendment to Agreement on October 17, 2023. F.Town and Attorney entered into a Fifth Amendment to Agreement on June 18, 2024, AMENDMENT 1.The fee schedule associated with the hourly rates for the following consultant positions shall be increased to the following amounts: Partners $430.00 Senior Counsel $360.00 Associates $270.00 - $340.00 Labor Relations/Human Resources Consultant $280.00 Classification and Compensation Consultant $210.00 Paralegals $150.00 E-Discovery Specialists $175.00 Law Clerks $150.00 - $185.00 2.All other terms and conditions of the Agreement dated February 1, 2020, the First Amendment dated May 17, 2022, Second Amendment dated September 12, 2022, Third Amendment dated September 19, 2023, Fourth Amendment dated October 17, 2023, and Fifth Amendment dated June 18, 2024, remain in full force and effect. IN WITNESS WHEREOF, the Town and Attorney have executed the Sixth Amendment to Agreement as of the date indicated above. Town of Los Gatos: Attorney: By: By: Katy Nomura J.Scott Tiedemann, Managing Partner Interim Town Manager Liebert Cassidy Whitmore Docusign Envelope ID: 9ABFA863-2F52-436B-85E6-8EBCFEEC7628 9/23/20249/25/2024 ATTACHMENT 2 Department Approval: Cheryl Parkman Human Resources Director Approved as to Form: Gabrielle Whelan Town Attorney Attest: Wendy Wood Town Clerk Docusign Envelope ID: 9ABFA863-2F52-436B-85E6-8EBCFEEC7628 9/23/2024 9/24/2024 9/25/2024 FIFTH AMENDMENT TO AGREEMENT FOR SPECIAL SERVICES THIS FIFTH AMENDMENT TO AGREEMENT is entered into this 1st day of July, 2024, by and between the Town of Los Gatos, State of California, herein called the “Town,” and Liebert Cassidy Whitmore, a Professional Corporation (“Attorney”), herein called the “Attorney.” RECITALS A.Town and Attorney entered into a Special Services Agreement from February 1, 2020, through February 1, 2022 (“Agreement”). B.Town and Attorney entered into a First Amendment to Agreement on May 17, 2022. C.Town and Attorney entered into a Second Amendment to Agreement on September 12, 2022. D.Town and Attorney entered into a Third Amendment to Agreement on September 19, 2023. E.Town and Attorney entered into a Fourth Amendment to Agreement on October 17, 2023. AMENDMENT 1.Total compensation by the Town for the Attorney’s services shall increase by an additional $120,000, not to exceed $550,000 over the course of the agreement. 2.The Town desires to extend the Agreement from July 1, 2024 through June 30, 2025. 3.All other terms and conditions of the Agreement dated February 1, 2020, the First Amendment dated May 17, 2022, Second Amendment dated September 12, 2022, Third Amendment dated September 19, 2023, and Fourth Amendment dated October 17, 2023 remain in full force and effect. IN WITNESS WHEREOF, the Town and Attorney have executed the Fifth Amendment to Agreement as of the date indicated above. Town of Los Gatos: Attorney: By: By: Katy Nomura J.Scott Tiedemann, Managing Partner Interim Town Manager Liebert Cassidy Whitmore Department Approval: Katy Nomura Interim Town Manager Docusign Envelope ID: 02751A2A-1660-4509-9407-2FA17A737491 9/20/20249/24/2024 9/24/2024 Approved as to Form: Gabrielle Whelan Town Attorney Attest: Wendy Wood Town Clerk Docusign Envelope ID: 02751A2A-1660-4509-9407-2FA17A737491 9/23/2024 9/24/2024 DocuSign Envelope ID: F709E150-B3B8-4C9B-994F-22D9C90698A1 LIEBERT CASSIDY WHITMORE FEE SCHEDULE Pmtners $415.00 Senior Counsel $345.00 Associates $230.00 -$325.00 Labor Relations/Human Resources Consultant $260.00 Paralegals $145.00 E-Discovery Specialists $145.00 Law Clerks $145.00 -$185.00 DocuSign Envelope ID F709E150-B3B8-4C9B-994F-22D9C90698A1 •AGR .;i.o. D.14? IHH ------ AGREEMENT FOR SPECIAL SERVICES This Agreement is entered into between the law firm of UEBERT CASSIDY WHITMORE, A Professional Corporation ("Attorney"), and the TOWN OF LOS GATOS, A Municipal Corporation ("Town"). t.Conditions This Agreement will not take effect, and Attorney will have no obligation to provide services, until Town returns a properly signed and executed copy of this Agreement. 2.Attorney's Services Attorney agrees to provide Town with consulting, representational and legal services pertaining to employment relations matters, including representation in negotiations and in administrative and court proceedings, as requested by Town or otherwise required by law. 3.Fees, Costs, Expenses Town agrees to pay Attorney the sums billed monthly for time spent by Attorney in providing the services, including reasonable travel time. to-n..\.. co_:.npe--vi S cm oor1 -hi I vv �� 6v1a;n'o n Of-Th-LS .�c.e-e ' The cunent range of hourly rates for Attorney time is from Two Hundred Ten to l� V\ot e�c..ee& Three Hundred Eighty Dollars ($210.00 • $380.00). See Schedule I for a full Fee <Et, l(,ps; ooo. Schedule. Attorney reviews its hourly rates on an annual basis and, if appropriate, adjusts them effective July l. Attorney will provide the Town with written notification of any adjustment in the range of rates. Attorney bills its time in minimum units of one­ tenth of an hour. 9120460.1 LC00l-009